First EU referendum results suggest tight race

Leader of the Commons, Chris Grayling said that if the UK votes to leave the European Union, the Conservatives should not be "plunged" into a leadership contest.

He said the Prime Minister would need to assemble a negotiating team who will need to discuss the process with European counterparts which could take months.

Nigel Farage has told Robert Peston that he still believes Remain "will probably nick it [the referendum] by a fraction".

Mr Farage also said:

• Ukip would continue to pose an "electoral threat"
• the Sunderland result was bad for the Labour Party
• the government "must carry out the wishes of the British people"
• the EU project is "dead" and "bad for Britain"
• the referendum will "change the landscape forever"

Liz Kendall, the ex-Labour leadership contender and MP for Leicester West, suggested that the larger-than-expected support for leave in parts of the north should not be a shock.

Following the huge win for Leave in Sunderland, a Labour source has told the Press Association:

The pound has dropped following a substantial win for Leave in Sunderland in a "significant move" showing that markets are "jittery", a trading expert has said.

Joe Rundle, Head of Trading for ETX Capital said: "This is a once in a year move and I think we're going to see a lot of these overnight.

"It shows how jittery the markets are and how close this referendum is going to be," he added.

ITV News' Political Editor Robert Peston says the margin of the 'Leave' victory in Sunderland is "a big win"and will "frighten" the 'Remain' camp.

He added that based on early results 'Leave' are "doing certainly rather better than many pundits, the City, the bookies were expecting so it's obviously going to be a gripping night."

Peston said the early picture across the north east, which seems to be in favour of 'Leave', is also a problem for Labour as it seems to show a division between the white, working class support for the party and its leadership.

John McDonnell, the shadow chancellor, has told ITV News the result of the EU referendum is going to be "extremely close".

McDonnell, an open Eurosceptic, denied suggestions he and Labour leader Jeremy Corbyn had not campaigned hard enough for a Remain vote, saying they had been honest with voters about their reservations.

He also called the referendum a "by-election protest vote" and said the result in Sunderland was "clearly a reaction against the state of the economy" and the fact "people are cheesed off".

But he said he still believed Britain will vote to stay in the EU.